Water Pricing in China: Impact of Socioeconomic Development

Abstract

This chapter briefly introduces the basic information about water resources in China and discusses the price changing trends of irrigation, residential, and industrial water in representative regions or cities. After continuous water price reform, water-pricing mechanisms have become more scientific and rational. Water supply pricing has completed a transformation from public welfare to commercialization, and resource value and waste treatment costs are now included in pricing mechanisms. The prices for irrigation, domestic, and industrial water have increased significantly during the past two decades. During the reform process, China launched multiple compulsive laws and regulations, economic incentives, and rewards to promote water-pricing reform and water-saving measures. At present, the water volume quota system is enforcing industrial water consumption in the country, and a block rate structure mechanism has been established in most cities for regulation of industrial and residential water usage.